How to buy property in Mexico?

Authored by the expert who managed and guided the team behind the Mexico Property Pack

Everything you need to know before buying real estate is included in our Mexico Property Pack

Who is the author of this content?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Mexico, Colombia, Brazil, Argentina, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Mexico. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheLatinInvestor, we explore the Mexican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Mexico City, Cancun, and Playa del Carmen. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Mexico, and are there restrictions on where or what they can own?

Yes, foreigners can legally buy property in Mexico without any nationality restrictions.

Direct ownership is allowed anywhere outside the "restricted zones," which include areas within 50 kilometers (31 miles) of any coastline and 100 kilometers (62 miles) of international borders. These zones cover popular destinations like Cancun, Playa del Carmen, Puerto Vallarta, and Cabo San Lucas.

Within restricted zones, foreigners cannot own property directly but must use a fideicomiso (bank trust) where a Mexican bank holds the title while the foreign buyer retains all beneficial rights. This trust structure provides the same practical ownership benefits as direct ownership, including the right to use, rent, sell, mortgage, and bequeath the property.

No restrictions exist on property types - foreigners can purchase residential homes, condominiums, commercial buildings, and vacant land under either ownership structure.

It's something we develop in our Mexico property pack.

What types of properties can foreigners purchase in Mexico, and are there ownership structures like fideicomisos or corporations involved?

Foreigners can purchase all types of real estate in Mexico including residential properties, commercial buildings, and vacant land.

Three main ownership structures are available depending on location and buyer preferences. Direct ownership applies to properties outside restricted zones, where foreigners receive the same deed (escritura) as Mexican nationals with no additional requirements or ongoing fees.

Fideicomiso trusts are mandatory for restricted zone properties, where a Mexican bank acts as trustee holding legal title while the foreign buyer becomes the beneficiary with full property rights. The trust lasts 50 years and is renewable indefinitely for subsequent 50-year periods. Annual trust administration fees range from $500 to $700 USD.

Mexican corporations represent a third option, particularly for commercial properties or multiple property investments. Foreign individuals can own up to 49% of a Mexican company directly, while the remaining 51% must be held by Mexican nationals or a Mexican trust. This structure requires ongoing corporate compliance including annual tax filings and board meetings.

Most residential buyers choose fideicomiso trusts for restricted zone properties due to their simplicity and lower ongoing obligations compared to corporate ownership.

Is it possible to buy property in Mexico without being physically in the country, and if so, how?

Yes, you can complete a property purchase in Mexico without being physically present through a power of attorney arrangement.

The process requires granting legal authority to a trusted representative, typically a Mexican attorney or real estate professional. Your power of attorney document must be notarized in your home country, then apostilled by the appropriate government authority to ensure international recognition.

The apostilled document must be translated into Spanish by a certified translator and then ratified by a Mexican consulate or presented directly to the Mexican notary handling your transaction. Your representative can then sign all purchase documents, attend closing, and complete the property registration on your behalf.

Remote buyers should budget additional time for document preparation and authentication, typically adding 2-3 weeks to the standard purchase timeline. Legal fees for power of attorney services range from $1,500 to $3,000 USD depending on transaction complexity.

While physical presence isn't required, many buyers prefer to visit the property and meet with professionals in person before finalizing such a significant investment.

What are the exact steps to buy property in Mexico, from start to finish?

Step	Description	Timeline
1. Property Search	Find and negotiate property purchase with real estate agent	1-4 weeks
2. Purchase Agreement	Sign promesa de compra-venta with 5-10% deposit	1-2 days
3. Notary Selection	Choose Mexican notary public to handle transaction	1-3 days
4. Due Diligence	Notary verifies title, checks liens, confirms tax payments	2-3 weeks
5. SRE Permit	Obtain foreign affairs ministry permit for foreign buyers	1-2 weeks
6. Trust Setup	Establish fideicomiso if property in restricted zone	1-2 weeks
7. Final Payment	Wire remaining balance plus closing costs to notary	1-2 days
8. Closing & Registration	Sign escritura deed and register with public registry	1-2 days

What documents are required for a foreigner to buy property in Mexico?

Foreign buyers need specific documentation to complete a property purchase in Mexico.

Essential Documents:1. Valid passport with at least 6 months remaining validity2. Tourist visa (FMM) or Mexican residency card if applicable3. RFC (Mexican tax ID number) obtained during the purchase process4. Proof of address from your home country (utility bill or bank statement)5. Bank statements or proof of funds demonstrating purchase capability6. Signed purchase agreement (promesa de compra-venta)7. SRE permit from Mexico's Ministry of Foreign Affairs

Additional documentation may be required for specific situations, such as corporate articles of incorporation for business buyers or marriage certificates for joint purchases. Your notary will provide a complete checklist based on your specific transaction.

All foreign documents must be translated into Spanish by a certified translator and some may require apostille authentication depending on their origin and intended use.

The RFC tax ID number is essential for property ownership and can be obtained through the Mexican tax office (SAT) or your notary can assist with the application process.

How long does the property purchase process usually take in Mexico?

The complete property purchase process in Mexico typically takes 30 to 60 days from signed purchase agreement to final closing.

Timeline variations depend on several factors including property location, financing requirements, and due diligence complexity. Cash transactions in areas requiring direct ownership generally close faster, often within 30-45 days. Properties in restricted zones requiring fideicomiso setup may extend the timeline to 45-60 days.

The due diligence phase conducted by the notary usually requires 2-3 weeks to verify clean title, confirm tax payments, and check for any liens or encumbrances. SRE permit processing adds another 1-2 weeks for foreign buyer approval.

Financing arrangements can significantly extend timelines, particularly for cross-border mortgages which may add 4-6 weeks to the standard process. Buyers using power of attorney should allow extra time for document authentication and translation.

Motivated sellers and buyers working with experienced professionals can sometimes complete transactions in as little as 3 weeks, though this requires all parties to prioritize the transaction and have documentation prepared in advance.

What are all the taxes, notary fees, closing costs, and other expenses involved in buying property in Mexico?

Cost Category	Percentage/Amount	Description
Property Acquisition Tax	2-4% of sales value	State tax varying by location, can reach 6.5% in some states
Notary Fees	1-2% of sales value	Based on transaction value and notary rate schedule
Registration Fees	0.5-1% of sales value	Public registry and municipal fees
Appraisal Fee	$300-500 USD	Required property valuation for official purposes
Fideicomiso Setup	$2,000-4,000 USD	Bank trust establishment (restricted zone only)
Legal Fees	$1,500-3,000 USD	Attorney representation and document review
Annual Trust Fee	$500-700 USD/year	Ongoing fideicomiso administration (if applicable)

Total closing costs typically range from 5% to 7% of the purchase price for most transactions. Properties requiring fideicomiso trusts incur higher initial costs due to trust establishment fees.

Is it common or possible for foreigners to get a mortgage in Mexico, and under what conditions and interest rates?

Mortgages for foreign buyers are available in Mexico, though less common than cash purchases.

Mexican banks typically require foreign borrowers to have permanent residency status and substantial local credit history, making domestic financing challenging for most international buyers. Interest rates for peso-denominated mortgages range from 8% to 12% annually as of mid-2025.

Cross-border mortgage providers offer more accessible financing options for US and Canadian buyers. These specialized lenders provide USD-denominated loans with competitive rates, typically 30-year terms, and no balloon payments. Down payment requirements usually range from 30% to 40% of the property value.

Loan amounts generally cap at $1 million USD for residential properties, with some lenders extending higher limits for luxury properties. The application process requires income verification, credit checks, and property appraisals in both the borrower's home country and Mexico.

Many buyers choose cash purchases due to simpler closing processes and stronger negotiating positions with sellers. Mexican sellers often prefer cash offers due to financing uncertainty and faster closing timelines.

It's something we develop in our Mexico property pack.

Can you buy a property entirely with cash in Mexico, and are there limits or reporting requirements?

Yes, cash purchases are completely legal and common in Mexico with no upper limits on transaction amounts.

Large cash transactions may trigger anti-money laundering reporting requirements, particularly for amounts exceeding $10,000 USD equivalent. Banks and notaries must report suspicious transactions or those involving unusual cash patterns to Mexican financial authorities.

Most buyers use wire transfers or cashier's checks rather than physical cash for security and documentation purposes. These payment methods provide clear transaction records and reduce risks associated with carrying large amounts of cash across borders.

Wire transfers typically require 1-2 business days to process and may incur fees of $50-150 USD depending on your bank and transfer amount. Ensure your bank is aware of the international real estate transaction to prevent transfer delays or holds.

Cash purchases often provide negotiating advantages as sellers prefer the certainty and speed of cash transactions over financed deals that might fall through due to lending issues.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How reliable are real estate agents and notaries in Mexico, and how can you verify their legitimacy?

Real estate professionals in Mexico vary significantly in experience and reliability, making due diligence essential.

Licensed real estate agents should provide proof of certification from AMPI (Mexican Association of Real Estate Professionals) or similar recognized organizations. Verify agent credentials by checking association websites and requesting references from recent international clients.

Reliable agents demonstrate local market knowledge, maintain professional offices, and provide transparent fee structures. They should readily explain local regulations, assist with due diligence, and connect you with reputable notaries and attorneys.

Mexican notaries are highly qualified legal professionals appointed by state governments with extensive training and bonding requirements. Verify notary credentials through state notary associations and ensure they have experience with foreign buyer transactions.

Warning signs include pressure for quick decisions, requests for large upfront payments, reluctance to provide references, or agents who discourage independent legal representation. Always work with professionals who encourage thorough due diligence and provide clear documentation.

Choose your own notary rather than accepting seller recommendations to avoid potential conflicts of interest, and consider hiring an independent attorney for additional transaction review.

What are the most common mistakes foreigners make when buying property in Mexico, and how can they be avoided?

Foreign buyers frequently make avoidable mistakes that can result in financial losses or legal complications.

Most Common Mistakes:1. **Working with uncertified agents** - Always verify agent credentials and choose AMPI-certified professionals2. **Insufficient due diligence** - Never skip title verification, lien searches, and property history reviews3. **Misunderstanding fideicomiso structures** - Research trust mechanics, fees, and renewal requirements thoroughly4. **Ignoring zoning and access rights** - Verify building permits, easements, and future development restrictions5. **Making cash payments without contracts** - Ensure all payments have formal documentation and legal oversight

Buyers often rush transactions due to vacation timelines or perceived "deals," leading to inadequate property inspections and legal review. Take time to understand local regulations and market conditions before committing to purchases.

Another frequent error involves failing to register property ownership with the Public Registry of Property, which can create future ownership disputes. Your notary should handle registration, but verify completion personally.

Many buyers underestimate ongoing costs including property taxes, HOA fees, maintenance, and trust administration fees. Budget for these expenses when evaluating purchase affordability.

It's something we develop in our Mexico property pack.

Will the Mexican legal system protect foreign buyers, and what precautions should be taken to ensure a secure transaction?

The Mexican legal system provides strong protections for foreign property owners when transactions follow proper legal procedures.

Foreign owners receive the same legal protections as Mexican nationals, including constitutional property rights, judicial recourse for disputes, and inheritance protections. The key requirement is proper registration with the Public Registry of Property, which establishes clear legal title.

Essential precautions include hiring independent legal representation, conducting comprehensive title searches, and verifying all property taxes are current. Never rely solely on seller-provided documentation or skip professional due diligence to save costs.

Work with experienced notaries who specialize in foreign buyer transactions and understand international requirements. Ensure all contracts are in Spanish with certified translations of any English documents to prevent interpretation disputes.

Purchase title insurance when available to protect against undiscovered title defects or prior claims. While not mandatory, title insurance provides additional security for significant investments.

Maintain detailed records of all transaction documents, payments, and communications. Store copies in multiple locations and ensure your estate planning documents address Mexican property ownership for inheritance purposes.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. MexLaw - Can Foreigners Buy Property in Mexico
2. Riviera Maya Blue - Foreign Citizens Property Guide
3. Global Property Guide - Mexico Buying Guide
4. Zisla - Essential Guide to Buying Mexico Property
5. TheLatinInvestor - Mexico Property Buying Guide
6. Mexican Consulate - Property Acquisition Guide
7. TheLatinInvestor - Mexico Real Estate for Foreigners
8. Mexperience - Good Realty Agent Signs
9. Properstar - Buying Property Without Residency
10. International Living - Mexico Real Estate